US tariff may threaten Nigeria’s economic growth – PWC

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Nigeria’s economic growth prospects in 2025 face a potential slowdown due to a newly imposed 14% reciprocal tariff by the United States on Nigerian imports. According to the latest ‘Nigeria Economic Outlook – April 2025’ report by PwC, this tariff could significantly impact Nigeria’s trade dynamics with the US.

Dr Ayo Teriba, Managing Director of Economic Associates, believes the US President may not reinstate the tariffs due to their impact on the American economy. “I don’t think he’s going to come back to it ever, unless he wants the American economy to collapse. America is the biggest debtor in the world. The people he is imposing tariffs on are some of their biggest creditors,” Teriba said.

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The 14% tariff could make Nigerian exports to the US less competitive, potentially leading to reduced export volumes and lower earnings for Nigerian farmers and exporters. The Manufacturers Association of Nigeria estimates this could erase approximately tn from Nigeria’s annual agricultural exports

The PwC report notes that the tariff could negatively impact Nigeria’s GDP growth. “Lower demand for Nigerian exports due to the tariff and potential loss of AGOA benefits may lead to a decline in foreign exchange inflows, affecting the stability of the naira,” the report stated.

To mitigate these challenges, the report recommends that the Nigerian government and businesses advocate for the extension and improvement of AGOA concessions, expand alliances beyond the US, and promote Nigerian exports across Africa through the African Continental Free Trade Area (AfCFTA).

The report also suggests that the federal government should mobilise long-term infrastructure financing, strengthen infrastructure investment, and provide investment guarantees to attract credible private sector participation.

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